The Central Organisation of Trade Unions (Cotu), has lauded President William Ruto’s cancellation of two multibillion contracts by Indian conglomerate Adani Group.
The President ordered the cancellation of a 30-year Sh95.68 billion deal for Adani Energy Solutions—a subsidiary of the conglomerate—to build three power transmission lines and two sub-stations for Kenya Electricity Transmission Company (Ketraco).
He also withdrew a proposed Sh238 billion deal to run the Jomo Kenyatta International Airport (JKIA) for a period of 30 years.
Cotu, the workers’ lobby, now says the cancellation marks a major victory for Kenyan workers, particularly those under the Kenya Aviation Workers Union (Kawu).
“Indeed, and as previously expressed by Cotu, both in public and private, workers represented by Kawu had raised concerns over unfair contract terms, including the takeover of operations at Jomo Kenyatta International Airport (JKIA) by foreign entities for an extended 30-year period,” said Cotu Secretary-General Francis Atwoli in a statement.
He urged the State agencies to prioritise social dialogue as a critical tool for fostering inclusive economic growth.
“We wish to remind all agencies of the State and government that proper consultation with workers is a must prior to any strategic reforms. Further, this bold move by the President is the clearest indication yet that the success of the Kenya Kwanza Government will be rooting out any suspicious deals and the successful prosecution of corruption cases,” Mr Atwoli said.
Workers in Kenya’s major airports had in September paralysed operations, including at JKIA, in a one-day strike, to protest the proposed deal.
Spearheaded by Kawu, the strike was in opposition to the proposed 30-year lease of JKIA to India's Adani Group, a deal workers feared would result in mass layoffs, loss of job security, and unfavorable contract terms for local employees.
The strike, which began as a go-slow, escalated into a full-scale shutdown, disrupting passenger flights and causing significant inconveniences to travellers. Workers cited secretive dealings involving Adani representatives and a lack of transparency as key grievances.
A clause in the proposed contract that limited Kenya’s legal recourse to international arbitration and a 10-year tax exemption for Adani particularly fuelled dissent.
Additionally, the deal would have granted the group monopoly rights, barring Kenya from constructing competing airports during the lease period.
In the press statement, Mr Atwoli applauded the union’s bold action, terming it a step toward restoring trust among workers in key sectors, including the Kenya Airports Authority.
The union reiterated its commitment to championing workers’ rights and promoting tripartite collaboration among the government, employers, and trade unions.
“We shall continue promoting the ideals of social dialogue among the tripartite partners so as to achieve inclusive economic growth even as we take an active part in the building of our beautiful country for the benefit of Kenyan workers,” said Mr Atwoli.
In his address, President Ruto directed the Energy and Transport ministries to identify new partners to carry out the projects.
“In furtherance of the principles enshrined in Article 10 of the Constitution on transparency and accountability, and based on new information provided by our investigative agencies and partner nations - that the procuring agencies within the Ministry of Transport and the Ministry of Energy and Petroleum immediately cancel the ongoing procurement process for the JKIA Expansion Public Private Partnership transaction, as well as the recently concluded Ketraco transmission line Public Private Partnership contract, and immediately commence the process of onboarding alternative partners,” President Ruto told Parliament on Thursday.
